85R6671 JAM-D
By: Pickett H.B. No. 2462
A BILL TO BE ENTITLED
AN ACT
relating to the titling of motor vehicles; creating a criminal
offense and authorizing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 501.002(30), Transportation Code, is
amended to read as follows:
(30) "Travel trailer" means a house trailer-type
vehicle or a camper trailer:
(A) that is a recreational vehicle defined under
24 C.F.R. Section 3282.8(g); or
(B) that:
(i) is less than eight feet six inches in
width or 45 [40] feet in length, exclusive of any hitch installed on
the vehicle;
(ii) is designed primarily for use as
temporary living quarters in connection with recreational,
camping, travel, or seasonal use;
(iii) is not used as a permanent dwelling;
and
(iv) is not a utility trailer, enclosed
trailer, or other trailer that does not have human habitation as its
primary function.
SECTION 2. Section 501.004(b), Transportation Code, is
amended to read as follows:
(b) This chapter does not apply to:
(1) a farm trailer or farm semitrailer with a gross
vehicle weight of not more than 34,000 pounds used only for the
transportation of farm products if the products are not transported
for hire;
(2) the filing or recording of a lien that is created
only on an automobile accessory, including a tire, radio, or
heater;
(3) a motor vehicle while it is owned or operated by
the United States; or
(4) a new motor vehicle on loan to a political
subdivision of the state for use only in a driver education course
conducted by an entity exempt from licensure under Section
1001.002, Education Code.
SECTION 3. Section 501.021(a), Transportation Code, is
amended to read as follows:
(a) A motor vehicle title issued by the department must
include:
(1) the legal name and address of each purchaser [and
seller at the first sale or a subsequent sale];
(2) the legal name of each seller and the municipality
and state in which each seller is located or resides [make of the
motor vehicle];
(3) the year, make, and body style [type] of the
vehicle;
(4) the [manufacturer's permanent] vehicle
identification number of the vehicle [or the vehicle's motor number
if the vehicle was manufactured before the date that stamping a
permanent identification number on a motor vehicle was universally
adopted];
(5) if the vehicle is subject to odometer disclosure
under Section 501.072, the odometer reading and odometer brand as
recorded on the last title assignment [serial number] for the
vehicle;
(6) the name and address of each lienholder and the
date of each lien on the vehicle, listed in the chronological order
in which the lien was recorded;
(7) a statement indicating rights of survivorship
under Section 501.031; and
(8) [if the vehicle has an odometer, the odometer
reading at the time of application for the title; and
[(9)] any other information required by the
department.
SECTION 4. Section 501.023(a), Transportation Code, is
amended to read as follows:
(a) The owner of a motor vehicle must present identification
and apply for a title as prescribed by the department, unless
otherwise exempted by law. To obtain a title, the owner must apply:
(1) to the county assessor-collector in the county in
which:
(A) the owner is domiciled; or
(B) the motor vehicle is purchased or encumbered;
or
(2) [if the county in which the owner resides has been
declared by the governor as a disaster area, to the county
assessor-collector in one of the closest unaffected counties to a
county that asks for assistance and:
[(A) continues to be declared by the governor as
a disaster area because the county has been rendered inoperable by
the disaster; and
[(B) is inoperable for a protracted period of
time; or
[(3) if the county assessor-collector's office of the
county in which the owner resides is closed for a protracted period
of time as defined by the department,] to the county
assessor-collector of a county [that borders the county in which
the owner resides] who is willing [agrees] to accept the
application if the county assessor-collector's office of the county
in which the owner resides is closed or may be closed for a
protracted period of time as defined by the department.
SECTION 5. Section 501.030(a), Transportation Code, is
amended to read as follows:
(a) Before a motor vehicle that was last registered or
titled in another state or country may be titled in this state, the
county assessor-collector shall verify that the vehicle has passed
the inspections required by Chapter 548, as indicated in the
Department of Public Safety's inspection database under Section
548.251, or that the owner has obtained an identification number
inspection in accordance with department rule.
SECTION 6. The heading to Section 501.032, Transportation
Code, is amended to read as follows:
Sec. 501.032. [ASSIGNMENT OF VEHICLE] IDENTIFICATION
NUMBER INSPECTION REQUIRED [BY DEPARTMENT].
SECTION 7. Sections 501.032(a) and (b), Transportation
Code, are amended to read as follows:
(a) In addition to any requirement established by
department rule, a motor vehicle, trailer, or semitrailer must have
an identification number inspection under Section 501.0321 if:
(1) the department does not have a record of title for
the vehicle, trailer, or semitrailer in the department's
registration and title system, and the owner of the vehicle,
trailer, or semitrailer is filing a bond with the department under
Section 501.053;
(2) the vehicle, trailer, or semitrailer was last
titled or registered outside of the United States and imported into
the United States; or
(3) the owner or person claiming ownership requires an
assigned or reassigned identification number under Section 501.033
[On proper application, the department shall assign a vehicle
identification number to a travel trailer, a trailer or
semitrailer, a frame, or an item of equipment, including a tractor,
farm implement, unit of special mobile equipment, or unit of
off-road construction equipment:
[(1) on which a vehicle identification number was not
die-stamped by the manufacturer;
[(2) on which a vehicle identification number
die-stamped by the manufacturer has been lost, removed, or
obliterated; or
[(3) for which a vehicle identification number was
never assigned].
(b) An active duty member of a branch of the United States
armed forces, or an immediate family member of such a member,
returning to Texas with acceptable proof of the active duty status
is exempt from an identification number inspection required under
Subsection (a)(2) [The applicant shall die-stamp the assigned
vehicle identification number at the place designated by the
department on the travel trailer, trailer, semitrailer, frame, or
equipment].
SECTION 8. Subchapter B, Chapter 501, Transportation Code,
is amended by adding Sections 501.0321 and 501.0322 to read as
follows:
Sec. 501.0321. IDENTIFICATION NUMBER INSPECTION. (a) An
inspection required under Section 501.032 must verify, as
applicable, the identity of:
(1) a motor vehicle;
(2) a trailer or semitrailer;
(3) a frame, body, or motor of a motor vehicle; or
(4) an item of equipment not required to be titled but
that may be registered under Chapter 502 or issued licensed plates
under Chapter 504.
(b) An inspection under this section may not rely solely on
the public identification number to verify the identity.
(c) An inspection under this section may be performed only
by a person who has successfully completed an appropriate training
program as determined by department rule and is:
(1) an auto theft investigator who is a law
enforcement officer of this state or a political subdivision of
this state;
(2) a person working under the direct supervision of a
person described by Subdivision (1); or
(3) an employee of the department authorized by the
department to perform an inspection under this section.
(d) The department shall prescribe a form on which the
identification number inspection is to be recorded. The department
may provide the form only to a person described by Subsection (c).
(e) The department or another entity that provides an
inspection under this section may impose a fee of not more than $40
for the inspection. The county or municipal treasurer of a county
or municipal entity that provides an inspection under this section
shall credit the fee to the general fund of the county or
municipality, as applicable, to defray the entity's cost associated
with the inspection. If the department provides an inspection
under this section, the fee shall be deposited to the credit of the
Texas Department of Motor Vehicles fund.
(f) The department may not impose a fee for an inspection
requested by the department. The department shall include a
notification of the waiver to the owner at the time the department
requests the identification number inspection.
Sec. 501.0322. ALTERNATIVE IDENTIFICATION NUMBER
INSPECTION. The department by rule may establish a process for
verifying the identity of an item listed in Section 501.0321(a) as
an alternative to an identification number inspection under Section
501.0321. The rules may include the persons authorized to perform
the inspection, when an alternative inspection under this section
is required, and any fees that may be assessed. Any fee authorized
must comply with Sections 501.0321(e) and (f).
SECTION 9. Section 501.033, Transportation Code, is amended
to read as follows:
Sec. 501.033. ASSIGNMENT AND REASSIGNMENT OF
IDENTIFICATION NUMBER BY DEPARTMENT. (a) If the permanent
identification number affixed by the manufacturer has been removed,
altered, or obliterated, or a permanent identification number was
never assigned, the department shall assign an identification
number to [A person determined by law enforcement or a court to be
the owner of] a motor vehicle, [travel trailer,] semitrailer, [or]
trailer, engine [a part of a motor vehicle], [travel trailer,
semitrailer, or trailer, a] frame, or body of a motor vehicle, or an
item of equipment not required to be titled but that may be
registered or issued license plates under Chapter 502 on inspection
under Section 501.0321 and application to the department [including
a tractor, farm implement, unit of special mobile equipment, or
unit of off-road construction equipment may apply to the department
for an assigned vehicle identification number that has been
removed, altered, obliterated, or has never been assigned].
(b) An application under this section must be in a manner
prescribed by the department and accompanied by valid evidence of
ownership in the name of, or properly assigned to, the applicant as
required by the department.
(c) A fee of $2 must accompany each application under this
section to be deposited in the Texas Department of Motor Vehicles
fund.
(d) The assigned [vehicle] identification number shall be
die-stamped or otherwise affixed in the manner and location
designated by the department.
(e) The department shall reassign an original
manufacturer's identification number only if the person who
conducts the inspection under Section 501.0321 determines that the
permanent identification number affixed by the manufacturer has
been removed, altered, or obliterated [If the auto theft unit of a
county or municipal law enforcement agency conducts an inspection
required by the department under this section, the agency may
impose a fee of $40. The county or municipal treasurer shall credit
the fee to the general fund of the county or municipality, as
applicable, to defray the agency's cost associated with the
inspection. The fee shall be waived by the department or agency
imposing the fee if the person applying under this section is the
current registered owner].
(f) If the department reassigns a manufacturer's
identification number, a representative of the department shall
affix the number in a manner and location designated by the
department.
(g) On affixing an assigned identification number or
witnessing the affixing of a reassigned identification number, the
owner shall certify on a form prescribed by the department that the
identification number has been affixed in the manner and location
designated by the department and shall submit the form in a manner
prescribed by the department.
(h) Only the department may issue an identification number
to a motor vehicle, trailer, semitrailer, engine, frame, or body of
a motor vehicle, or an item of equipment not required to be titled
but that may be registered or issued license plates under Chapter
502. The department may not recognize an identification number
assigned by any other agency or political subdivision of this
state.
SECTION 10. Section 501.036, Transportation Code, is
amended to read as follows:
Sec. 501.036. TITLE FOR FARM TRAILER OR FARM SEMITRAILER.
(a) Notwithstanding any other provision of this chapter, the
department may issue a title for a farm trailer or farm semitrailer
with a gross vehicle weight of not more than 34,000 [4,000] pounds
if[:
[(1) the farm semitrailer is eligible for registration
under Section 502.146; and
[(2)] all [other] requirements for issuance of a title
are met.
(b) To obtain a title under this section, the owner [of the
farm semitrailer] must:
(1) apply for the title in the manner required by
Section 501.023; and
(2) pay the fee required by Section 501.138.
(c) A subsequent purchaser of a farm trailer or farm
semitrailer titled previously under this section or in another
jurisdiction must obtain a title under [The department shall adopt
rules to implement and administer] this section.
SECTION 11. Section 501.037, Transportation Code, is
amended to read as follows:
Sec. 501.037. TITLE FOR TRAILERS OR SEMITRAILERS. (a)
Notwithstanding any other provision of this chapter, the department
may issue a title for a trailer or semitrailer that has a gross
vehicle weight of 4,000 pounds or less if all other requirements for
issuance of a title are met.
(b) To obtain a title under this section, the owner of the
trailer or semitrailer must:
(1) apply for the title in the manner required by
Section 501.023; and
(2) pay the fee required by Section 501.138.
(c) A subsequent purchaser of a trailer or semitrailer
titled previously under this section or in another jurisdiction
must obtain a title under this section.
SECTION 12. Section 501.071(a), Transportation Code, is
amended to read as follows:
(a) Except as provided by Sections 503.036 and [in Section]
503.039, a motor vehicle may not be the subject of a subsequent sale
unless the owner designated on the title submits a transfer of
ownership of the title.
SECTION 13. Section 501.072, Transportation Code, is
amended to read as follows:
Sec. 501.072. ODOMETER DISCLOSURE STATEMENT. (a) Except
as provided by Subsection (c), the transferor [seller] of a motor
vehicle transferred [sold] in this state shall provide to the
transferee [buyer, on a form prescribed by the department,] a
[written] disclosure of the vehicle's odometer reading at the time
of the transfer in compliance with 49 C.F.R. Part 580 [sale. The
form must include space for the signature and printed name of both
the seller and buyer].
(b) When application for a [certificate of] title is made,
the transferee [owner] shall record the [current] odometer reading
on the application. The [written] disclosure required by
Subsection (a) must accompany the application.
(c) An odometer disclosure statement is not required for the
transfer [sale] of a motor vehicle that is exempt from odometer
disclosure requirements under 49 C.F.R. Section 580.17 [:
[(1) has a manufacturer's rated carrying capacity of
more than two tons;
[(2) is not self-propelled;
[(3) is 10 or more years old;
[(4) is sold directly by the manufacturer to an agency
of the United States government in conformity with contractual
specifications; or
[(5) is a new motor vehicle].
(d) The department shall provide for use consistent with 49
C.F.R. Part 580:
(1) a secure power of attorney form; and
(2) a secure reassignment form for licensed motor
vehicle dealers.
(e) In this section, "transferee" and "transferor" have the
meanings assigned by 49 C.F.R. Section 580.3.
SECTION 14. Section 501.091(9), Transportation Code, is
amended to read as follows:
(9) "Nonrepairable motor vehicle" means a motor
vehicle [that]:
(A) that is damaged, wrecked, or burned to the
extent that the only residual value of the vehicle is as a source of
parts or scrap metal; [or]
(B) that comes into this state under a comparable
ownership document that indicates that the vehicle is
nonrepairable;
(C) that a salvage vehicle dealer has reported to
the department under Section 501.1003;
(D) for which an owner has surrendered evidence
of ownership for the purpose of dismantling, scrapping, or
destroying the motor vehicle;
(E) that is sold for export only by a salvage
motor vehicle dealer under Section 501.099; or
(F) that is sold and the sale is reported as an
export-only sale to the National Motor Vehicle Title Information
System by any state, jurisdiction, or entity required to report to
the National Motor Vehicle Title Information System.
SECTION 15. Section 501.09113(a), Transportation Code, is
amended to read as follows:
(a) On receipt of a proper application from the owner of a
motor vehicle, the department shall issue the applicant the
appropriate title with any notations determined by the department
as necessary to describe or disclose the motor vehicle's current or
former condition if the [This section applies only to a] motor
vehicle was brought into this state from another state or
jurisdiction and [that] has on any title or comparable out-of-state
ownership document issued by the other state or jurisdiction or
record in the National Motor Vehicle Title Information System
reported by another state or jurisdiction:
(1) a "rebuilt," "repaired," "reconstructed," "flood
damage," "fire damage," "owner retained," "salvage," or similar
notation; or
(2) a "nonrepairable," "dismantle only," "parts
only," "junked," "scrapped," "crushed," "totaled," or similar
notation.
SECTION 16. Section 501.097(a), Transportation Code, as
amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
the 82nd Legislature, Regular Session, 2011, is reenacted to read
as follows:
(a) An application for a nonrepairable vehicle title,
nonrepairable record of title, salvage vehicle title, or salvage
record of title must:
(1) be made in a manner prescribed by the department
and accompanied by a $8 application fee;
(2) include, in addition to any other information
required by the department:
(A) the name and current address of the owner;
and
(B) a description of the motor vehicle, including
the make, style of body, model year, and vehicle identification
number; and
(3) include the name and address of:
(A) any currently recorded lienholder, if the
motor vehicle is a nonrepairable motor vehicle; or
(B) any currently recorded lienholder or a new
lienholder, if the motor vehicle is a salvage motor vehicle.
SECTION 17. Section 501.1001(a), Transportation Code, as
amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
the 82nd Legislature, Regular Session, 2011, is reenacted and
amended to read as follows:
(a) Except as provided by Section 501.0925, an insurance
company that is licensed to conduct business in this state and that
acquires, through payment of a claim, ownership or possession of a
salvage motor vehicle or nonrepairable motor vehicle [covered by a
certificate of title issued by this state or a manufacturer's
certificate of origin] shall surrender the [a] properly assigned
evidence of ownership and apply for the appropriate title under
Section 501.097 [title or manufacturer's certificate of origin to
the department, on a form prescribed by the department].
SECTION 18. Section 501.1002(a), Transportation Code, as
amended by Chapters 1136 (H.B. 1422) and 1296 (H.B. 2357), Acts of
the 82nd Legislature, Regular Session, 2011, is reenacted to read
as follows:
(a) If an insurance company pays a claim on a nonrepairable
motor vehicle or salvage motor vehicle and the insurance company
does not acquire ownership of the motor vehicle, the insurance
company shall:
(1) submit to the department, before the 31st day
after the date of the payment of the claim, on the form prescribed
by the department, a report stating that the insurance company:
(A) has paid a claim on the motor vehicle; and
(B) has not acquired ownership of the motor
vehicle; and
(2) provide notice to the owner of the motor vehicle
of:
(A) the report required under Subdivision (1);
and
(B) the requirements for operation or transfer of
ownership of the motor vehicle under Subsection (b).
SECTION 19. Section 501.1002(b), Transportation Code, is
amended to read as follows:
(b) The owner of a salvage or nonrepairable motor vehicle
[to which this section applies] may not [operate or permit
operation of the motor vehicle on a public highway or] transfer
ownership of the motor vehicle by sale or otherwise unless the
department has issued a salvage vehicle title, salvage record of
title, nonrepairable vehicle title, or nonrepairable record of
title for the motor vehicle or a comparable ownership document has
been issued by another state or jurisdiction for the motor vehicle
in the name of the owner.
SECTION 20. Section 501.109, Transportation Code, is
amended by amending Subsections (d) and (e) and adding Subsections
(g) and (h) to read as follows:
(d) Except as provided by Subsection (e), an offense under
Subsection (a), (b), or (c) [this section] is a Class C misdemeanor.
(e) If it is shown on the trial of an offense under
Subsection (a), (b), or (c) [this section] that the defendant has
been previously convicted of:
(1) one offense under Subsection (a), (b), or (c)
[this section], the offense is a Class B misdemeanor; or
(2) two or more offenses under Subsection (a), (b), or
(c) [this section], the offense is a state jail felony.
(g) A person commits an offense if the person knowingly
provides false or incorrect information or without legal authority
signs the name of another person on:
(1) an application for a title to a nonrepairable
motor vehicle or salvage motor vehicle;
(2) an application for a certified copy of an original
title to a nonrepairable motor vehicle or salvage motor vehicle;
(3) an assignment of title for a nonrepairable motor
vehicle or salvage motor vehicle;
(4) a discharge of a lien on a title for a
nonrepairable motor vehicle or salvage motor vehicle; or
(5) any other document required by the department or
necessary for the transfer of ownership of a nonrepairable motor
vehicle or salvage motor vehicle.
(h) An offense under Subsection (g) is a felony of the third
degree.
SECTION 21. Effective January 1, 2019, the heading to
Section 501.134, Transportation Code, is amended to read as
follows:
Sec. 501.134. CERTIFIED COPY OF LOST OR DESTROYED
CERTIFICATE OF TITLE.
SECTION 22. Effective January 1, 2019, Sections 501.134(a),
(b), (c), and (d), Transportation Code, are amended to read as
follows:
(a) If a printed title is lost or destroyed, the owner or
lienholder disclosed on the title may obtain, in the manner
provided by this section and department rule, a certified copy of
the lost or destroyed title directly from the department by
applying in a manner prescribed by the department and paying a fee
of $2. A fee collected under this subsection shall be deposited to
the credit of the Texas Department of Motor Vehicles fund [and may
be spent only as provided by Section 501.138].
(b) If a lien is disclosed on a title, the department may
issue a certified copy of the [original] title only to the first
lienholder or the lienholder's verified agent unless the owner has
original proof from the lienholder of lien satisfaction.
(c) The department must plainly mark "certified copy" on the
face of a certified copy issued under this section. [A subsequent
purchaser or lienholder of the vehicle only acquires the rights,
title, or interest in the vehicle held by the holder of the
certified copy.]
(d) A certified copy of the title that is lawfully obtained
under this section supersedes and invalidates any previously issued
title or certified copy. If the certified copy of the title is
later rescinded, canceled, or revoked under Section 501.051, the
department may revalidate a previously superseded or invalidated
title or certified copy of title [A purchaser or lienholder of a
motor vehicle having a certified copy issued under this section may
at the time of the purchase or establishment of the lien require
that the seller or owner indemnify the purchaser or lienholder and
all subsequent purchasers of the vehicle against any loss the
person may suffer because of a claim presented on the original
title].
SECTION 23. Section 541.201(5), Transportation Code, is
amended to read as follows:
(5) "House trailer" means a trailer or semitrailer,
other than a towable recreational vehicle, that:
(A) is transportable on a highway in one or more
sections;
(B) is less than 45 [40] feet in length,
excluding tow bar, while in the traveling mode;
(C) is built on a permanent chassis;
(D) is designed to be used as a dwelling or for
commercial purposes if connected to required utilities; and
(E) includes plumbing, heating,
air-conditioning, and electrical systems.
SECTION 24. The following provisions of the Transportation
Code are repealed:
(1) Sections 501.032(c) and (d); and
(2) Section 501.09113(b).
SECTION 25. Except as otherwise provided by this Act, this
Act takes effect September 1, 2017.